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What is Industry Aggregation?

Updated: 10/25/2022
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JamesLing

Lvl 1
12y ago

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Industry Aggregation is a new business model for American industry based on collaboration between companies serving the same basic market. It can best be understood by comparing it to the "Keiretsu" business model which fueled the Japanese "Economic Miracle" of the post World War II era. In the keiretsu model large industrials trading on the Tokyo Stock Exchange would have interlocking ownership and partner with a bank which would supply credit to the entire group. The companies were thus able to achieve tremendous benefits through joint cost-sharing activities as well as increases in revenues through cross-marketing.

The American Industry Aggregation model is similar but designed from the ground up for small to mid-sized private companies which then enjoy the same basic set of benefits as the Keiretsu members. In the Industry Aggregation model a public company serves as the group's banker.

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